Does the car insurance cowl flood harm? – Bankrate.com
A car insurance usually protects your vehicle against flood damage, provided you have comprehensive insurance coverage. And while you might think that water damage to vehicles is rare, it is actually quite common.
Flooding is the most common natural disaster in the United States and occurs with weather events ranging from simple thunderstorms to severe hurricanes. Floods are also the country's deadliest weather event, killing 83 people in 2018. In comparison, 10 people died from tornadoes during this period. The annual property damage from flooding is significant, and data collected by CARFAX shows that there were 446,836 flood-damaged cars on U.S. roads in 2020.
Which insurance covers floods?
While there are two types of auto insurance that will cover damage to your vehicle, fully comprehensive is the only protection that will cover flood damage to your car. Comprehensive Insurance provides comprehensive protection for most damage or loss caused to your vehicle by factors other than a collision. In addition to flood damage, the fully comprehensive insurance covers, for example, repair or replacement costs in the event of theft, vandalism or damage caused by fire, hail, falling objects and even animal damage.
The collision protection, on the other hand, is designed to protect you from financial losses resulting from vehicle damage in a single or multiple accident.
It is important to note that other types of policies, such as B. Your home insurance, usually does not provide coverage for floods or other vehicle damage. While almost every state requires minimum insurance for you to legally drive, this is usually just one type of liability insurance – full coverage is optional. Often times, however, lenders or car rental companies require a certain amount of fully comprehensive insurance until you have paid off your loan.
When does flood cause damage?
Flooding from any source of weather can cause significant damage to a vehicle, with water damaging the engine, electrical system, and most other mechanical components of your vehicle.
Some insurance companies will try to work out a repair solution before declaring the vehicle a total loss. It is important that you understand and discuss with your carrier the many other problems that flooding can cause for vehicles that may not initially appear. For example, water ingress can eventually lead to rust, corrosion, mold, and other problems that may not appear for months or even years.
When does the insurance not cover flood damage?
Many people try to save some money by purchasing the minimum amounts insured by law. Since these requirements are only a liability insurance, the conclusion of such an insurance unfortunately does not offer any protection against flooding. As already mentioned, only fully comprehensive insurance covers flood damage.
Fully comprehensive insurance also does not offer any protection against flooding or simple water ingress if the damage was caused by negligence on the part of the insured. For example, if water gets into a vehicle through an open sunroof or window during a storm, the auto insurer will certainly try to deny coverage. In the event of success, the insured person must pay for the necessary repairs.
How do I complain after a flood?
As with any claim, it is important that you notify your car insurer as soon as you notice flood damage. You don't need to have all the details gathered or even understand the extent of the damage to make this initial notification. You can make this initial report by calling your insurance agent or, in many cases, online or via the app. You will be given a damage number.
Gather all the information documenting the vehicle damage as soon as possible. This includes photos and a timeline of the flood that caused the damage. Once this material is collected, submit it to your auto insurer.
At some point an expert will be dispatched to assess the damage to the vehicle and based on this assessment and your input, an offer will be made by the insurer. It is always advisable to get your own assessment of the damage and repair costs from your own auto mechanic. Remember that you are under no obligation to accept the first insurance offer and you should feel comfortable making a counter-proposal based on your own assessment.
frequently asked Questions
How hard is it to repair a car damaged by flooding?
It is very difficult to repair a vehicle damaged by severe flooding. This is especially the case with newer vehicles that have more sophisticated electronic systems and wiring that can be corroded and cause damage that may occur in the future. Even large-scale mold can hardly be got rid of.
Can your car get a total loss due to flood damage?
Since insurance companies are also realizing the difficulty of repairing flooded vehicles, they may be more inclined to report a flooded car as a total loss. This is especially true if the vehicle was exposed to water that rose several centimeters or more and remained in the vehicle for a long time. You should also raise this issue with your insurer, emphasizing that most flood damage is likely to happen later.
Is it worth fixing a flooded car?
It may be, but it's important to be certain that the flood damage wasn't severe enough to cause long-term damage that may not initially occur. If water enters an engine, such as through the vehicle's air intake, an engine can hydro-lock. This usually occurs while driving through high water and is likely to irreparably ruin the engine.
What damage and losses does the car insurance not cover?
The car insurance does not cover damage or loss caused by the negligence or intent of the driver or owner. In addition, car insurance is not designed to cover normal wear and tear such as tire or brake wear. And remember that the minimum statutory coverage only covers personal injury or property damage that you cause to others. These policies do not cover your own injuries or damage to your vehicle.